BRANDS & BRAND MANAGEMENT

Identify the logos

Identify the taglines

Lasts Long, Really Long

USA 1851 / The League of Professionals
High performance delivered
Be 100 % Sure
Celebrate Life
The Power of Knowledge
Beautiful You , Today Tomorrow
Think
Think Different
Pure Banking, Nothing Else

What is a brand?
For the American Marketing Association (AMA), a
brand is a name, term, sign, symbol, or design,
or a combination of them, intended to identify the
goods and services of one seller or group of
sellers and to differentiate them from those of
competition.
These different components of a brand that
identify and differentiate it are brand elements.

What is a brand?
Many practicing managers refer to
more than that as something that
created a certain amount of
reputation, prominence, and so
marketplace.

a brand as
has actually
awareness,
on in the

We can make a distinction between the AMA

definition of a brand with a small b and the
industrys concept of a Brand with a capital b.

Brands vs. Products

A product is anything we can offer to a
market for attention, acquisition, use, or
consumption that might satisfy a need or
want.
A product may be a physical good, a
service, a retail outlet, a person, an
organization, a place, or even an idea.
A brand is therefore more than a product,
as it can have dimensions that differentiate
it in some way from other products
designed to satisfy the same need.
1.7

Why do brands matter?

What functions do brands perform
that make them so valuable to
marketers?

1.8

Importance of Brands to
Consumers
Identification of the source of the
product
Assignment of responsibility to
product maker
Risk reducer
Search cost reducer
Promise, bond, or pact with product
maker
Symbolic device
Signal of quality
1.9

Reducing the Risks in Product

Decisions
Consumers may perceive many different types of risks in
buying and consuming a product:
Functional riskThe product does not perform up to
expectations.
Physical riskThe product poses a threat to the
physical well-being or health of the user or others.
Financial riskThe product is not worth the price paid.
Social riskThe product results in embarrassment
from others.
Psychological riskThe product affects the mental
well-being of the user.
Time riskThe failure of the product results in an
opportunity cost of finding another satisfactory product.

1.10

Importance of Brands to
Firms
To firms, brands represent
enormously valuable pieces of legal
property, capable of influencing
consumer behavior, being bought
and sold, and providing the security
of sustained future revenues.

1.11

Importance of Brands to Firms

Identification to simplify handling or
tracing
Legally protecting unique features
Signal of quality level
Endowing products with unique
associations
Source of competitive advantage
Source of financial returns
1.12

Can everything be branded?

Ultimately a brand is something that
resides in the minds of consumers.
The key to branding is that
consumers perceive differences
among brands in a product category.
Even commodities can be branded

1.13

What is branded?

Physical goods
Services
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainment
Geographic locations
Ideas and causes
1.14

Source of Brands Strength

The real causes of enduring market
leadership are vision and will. Enduring
market leaders have a revolutionary and
inspiring vision of the mass market, and they
exhibit an indomitable will to realize that
vision. They persist under adversity, innovate
relentlessly, commit financial resources, and
leverage assets to realize their vision.
Gerald J. Tellis and Peter N. Golder, First to Market, First to Fail?
Real Causes of Enduring Market Leadership, MIT Sloan
Management Review, 1 January 1996

1.15

Importance of Brand
Management
The bottom line is that any brand
no matter how strong at one point in
timeis vulnerable, and susceptible
to poor brand management.

1.16

Branding Challenges and

Opportunities

Savvy customers
Brand proliferation
Media fragmentation
Increased competition
Increased costs
Greater accountability

1.17

The Brand Equity Concept

No common viewpoint on how it should
be conceptualized and measured
It stresses the importance of brand role
in marketing strategies.
Brand equity is defined in terms of the
marketing effects uniquely attributable
to the brand.
Brand equity relates to the fact that different
outcomes result in the marketing of a product or
service because of its brand name, as compared to if
the same product or service did not have that name.

1.18

Strategic Brand Management

It involves the design and implementation of
marketing programs and activities to build, measure,
and manage brand equity.
The Strategic Brand Management Process is defined
as involving four main steps:
1. Identifying and establishing brand positioning and values
2. Planning and implementing brand marketing programs
3. Measuring and interpreting brand performance
4. Growing and sustaining brand equity

1.19

Strategic Brand Management

Process
Steps

Key Concepts

Identify and establish

brand positioning and values

Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra

Plan and implement

brand marketing programs

Mixing and matching of brand elements

Integrating brand marketing activities
Leveraging of secondary associations

Measure and interpret

brand performance

Brand value chain

Brand audits
Brand tracking
Brand equity management system

Grow and sustain

brand equity

Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
1.20 Brand reinforcement and revitalization

CUSTOMER-BASED BRAND EQUITY

2.21

Customer-Based Brand Equity

The differential effect that brand
knowledge has on consumer response
to the marketing of that brand.
Keller, 1993

2.22

Customer-Based Brand
Equity

Differential effect

Differences in consumer response

Brand knowledge
A result of consumers knowledge about
the brand

Consumer response to marketing

Choice of a brand
Recall of copy points from an ad
Response to a sales promotion
Evaluations of a proposed brand
extension
2.23

Brand Equity as a Bridge

Reflection of past investments in the
marketing of a brand
Direction for future marketing actions
or programs

2.24

Making a Brand Strong:

Brand Knowledge
Brand knowledge is the key to
creating brand equity.
Brand knowledge consists of a brand
node in memory with a variety of
associations linked to it.
Brand knowledge has two
components: brand awareness and
brand image.
2.25

Sources of Brand Equity

Brand awareness
Brand recognition
Brand recall

Brand image
Strong, favorable, and unique brand
associations

2.26

Brand Awareness
Advantages
Learning advantages
Register the brand in the minds of
consumers

Consideration advantages
Likelihood that the brand will be a
member of the consideration set

Choice advantages
Affect choices among brands in the
consideration set
2.27

Establishing Brand
Awareness
Increasing the familiarity of the
brand through repeated exposure
(for brand recognition)
Forging strong associations with the
appropriate product category or
other relevant purchase or
consumption cues (for brand recall)

2.28

Creating a Positive Brand

Image
Brand Associations
Does not matter which source of brand
association
Need to be favorable, strong, and
unique
Marketers should recognize the
influence of these other sources of
information by both managing them as
well as possible and by adequately
accounting for them in designing
communication strategies.
2.29

The Four Steps of Brand

Building
1. Ensure identification of the brand with
customers and an association of the
brand in customers minds
2. Establish the totality of brand meaning in
the minds of consumers
3. Elicit the proper customer responses to
the brand identification and brand
meaning
4. Convert brand response to create an
intense, active loyalty relationship
between customers and the brand
2.30

Four Questions Customers ask of

Brands
1. Who are you? (brand identity)
2. What are you? (brand meaning)
3. What about you? What do I think or
feel about you? (brand responses)
4. What about you and me? What kind
of association and how much of a
connection would I like to have with
you? (brand relationships)
2.31

Customer-Based Brand Equity

Pyramid
4.RELATIONSHIPS=
4.RELATIONSHIPS=
Whataboutyouandme?
Whataboutyouandme?

RESONANCE

JUDGMENTS

PERFORMANCE

3.RESPONSE=
3.RESPONSE=
Whataboutyou?
Whataboutyou?

FEELINGS

IMAGERY

2.MEANING=
2.MEANING=
Whatareyou?
Whatareyou?

1.IDENTITY=
1.IDENTITY=

SALIENCE
2.32

Whoareyou?
Whoareyou?

Sub-Dimensions of CBBE
Pyramid
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

QUALITY
CREDIBILITY
CONSIDERATION
SUPERIORITY

PRIMARYCHARACTERISTICS&
SECONDARYFEATURES
PRODUCTRELIABILITY,DURABILITY
&SERVICEABILITY
SERVICEEFFECTIVENESS,
EFFICIENCY&EMPATHY
STYLEANDDESIGN
PRICE

WARMTH
FUN
EXCITEMENT
SECURITY
SOCIALAPPROVAL
SELFRESPECT

USERPROFILES
PURCHASE&USAGE
SITUATIONS
PERSONALITY&
VALUES
HISTORY,HERITAGE
&EXPERIENCES

CATEGORYIDENTIFICATION
NEEDSSATISFIED

Salience Dimensions
Depth of brand awareness
Ease of recognition and recall
Strength and clarity of category
membership

Breadth of brand awareness

Purchase consideration
Consumption consideration

2.34

Depth and Breadth

Importance
The product category hierarchy
shows us not only the depth of
awareness matters but also the
breadth.
The brand must not only be top-ofmind and have sufficient mind
share, but it must also do so at the
right times and places.
2.35

Product Category Structure

To fully understand brand recall, we
need to appreciate product category
structure, or how product categories
are organized in memory.

2.36

Performance Dimensions
Primary characteristics and
supplementary features
Product reliability, durability, and
serviceability
Service effectiveness, efficiency, and
empathy
Style and design
Price
2.37

Imagery Dimensions
User profiles
Demographic and psychographic characteristics
Actual or aspirational
Group perceptionspopularity

Purchase and usage situations

Type of channel, specific stores, ease of purchase
Time (day, week, month, year, etc.), location, and context
of usage

Personality and values

Sincerity, excitement, competence, sophistication, and
ruggedness

History, heritage, and experiences

Nostalgia
Memories
2.38

Judgment Dimensions
Brand quality
Value
Satisfaction

Brand credibility
Expertise
Trustworthiness
Likeability

Brand
consideration
Relevance

Brand superiority
Differentiation

2.39

Feelings Dimensions

Warmth
Fun
Excitement
Security
Social Approval
Self-respect

2.40

Resonance Dimensions
Behavioral loyalty

Frequency and amount of repeat purchases

Attitudinal attachment

Love brand (favorite possessions; a little

pleasure)
Proud of brand

Sense of community
Kinship
Affiliation

Active engagement

Seek information
Join club
Visit website, chat rooms
2.41

Customer-Based Brand Equity

Model
INTENSE,ACTIVE
INTENSE,ACTIVE
LOYALTY
LOYALTY

Consumer
Brand
Resonance

Consumer
Judgments

Brand
Performance

Consumer
Feelings

Brand
Imagery

BrandSalience

RATIONAL&
RATIONAL&
EMOTIONAL
EMOTIONAL
REACTIONS
REACTIONS
POINTSOF
POINTSOF
PARITY&
PARITY&
POINTSOF
POINTSOF
DIFFERENCE
DIFFERENCE
DEEP,BROAD
DEEP,BROAD
BRAND
BRAND
AWARENESS
AWARENESS

Brand Building Implications

Customers own brands.

Dont take shortcuts with brands.
Brands should have a duality.
Brands should have richness.
Brand resonance provides important
focus.

2.43

Creating Customer Value

Customer-brand relationships are

the foundation of brand resonance
and building a strong brand.
The customer-based brand equity
model certainly puts that notion
front and center.

2.44

Is a company consumercentric?
1. Is the company looking for ways to
take care of you?
2. Does the company know its customers
well enough to differentiate between
them?
3. Is someone accountable for
customers?
4. Is the company managed for
shareholder value?
5. Is the company testing new customer
Larry Seldenfrom
and Geoffrey
Colvin, 2004.
offers Sources:
and learning
the results?
2.45

Customer Relationship Management

(CRM)
Uses a companys data systems and
applications to track consumer
activity and manage customer
interactions with the company

2.46

Customer Equity
Blattberg and Deighton (1996) offer eight guidelines as
a means of maximizing customer equity:
Invest in highest-value customers first
Transform product management into customer management
Consider how add-on sales and cross-selling can increase
customer equity
Look for ways to reduce acquisition costs
Track customer equity gains and losses against marketing
programs
Relate branding to customer equity
Monitor the intrinsic retainability of your customer
Consider writing separate marketing plansor even building two
marketing organizationsfor acquisition and retention efforts
2.47

Customer Equity
The sum of lifetime values of all
customers
Customer lifetime value (CLV) is
affected by revenue and by the cost
of customer acquisition, retention,
and cross-selling
Consists of three components:
Value equity
Brand equity
Relationship equity
2.48

Relationship of Customer Equity to

Brand Equity
Customers drive the success of
brands but brands are the necessary
touchpoint that firms have to
connect with their customers.
Customer-based brand equity
maintains that brands create value
by eliciting differential customer
response to marketing activities.
The higher price premiums and
increased levels of loyalty
engendered by brands generate
2.49

BRAND POSITIONING & VALUES

3.50

Brand Positioning
Is at the heart of the marketing
strategy
. . . the act of designing the
companys offer and image so that it
occupies a distinct and valued place
in the target customers minds.
Philip Kotler

3.51

Determining a frame of
reference
What are the ideal points-of-parity
and points-of-difference brand
associations vis--vis the
competition?
Marketers need to know:
Who the target consumer is
Who the main competitors are
How the brand is similar to these
competitors
How the brand is 3.52
different from them

Target Market
A market is the set of all actual and
potential buyers who have sufficient
interest in, income for, and access to a
product.
Market segmentation divides the market
into distinct groups of homogeneous
consumers who have similar needs and
consumer behavior, and who thus require
similar marketing mixes.
Market segmentation requires making
tradeoffs between costs and benefits.
3.53

Criteria for Segmentation

Identifiability: Can we easily identify the
segment?
Size: Is there adequate sales potential in
the segment?
Accessibility: Are specialized distribution
outlets and communication media available
to reach the segment?
Responsiveness: How favorably will the
segment respond to a tailored marketing
program?
3.54

Nature of Competition
Deciding to target a certain type of
consumer often defines the nature of
competition
Do not define competition too
narrowly
Ex: a luxury good with a strong hedonic
benefit like stereo equipment may
compete as much with a vacation as
with other durable goods like furniture
3.55

Points-of-Parity
and Points-of-Difference
Points-of-difference (PODs) are attributes
or benefits that consumers strongly
associate with a brand, positively
evaluate, and believe that they could not
find to the same extent with a competitive
brand.
Points-of-parity associations (POPs), on
the other hand, are not necessarily unique
to the brand but may in fact be shared
with other brands.
3.56

Brand Positioning Guidelines

Two key issues in arriving at the
optimal competitive brand
positioning are:
Defining and communicating the
competitive frame of reference
Choosing and establishing points-ofparity and points-of-difference

3.57

Defining and Communicating the

Competitive Frame of Reference
Defining a competitive frame of
reference for a brand positioning is to
determine category membership.
The preferred approach to
positioning is to inform consumers of
a brands membership before stating
its point of difference in relationship
to other category members.
3.58

Choosing POPs & PODs

Desirability criteria (consumer
perspective)
Personally relevant
Distinctive and superior
Believable and credible

Deliverability criteria (firm

perspective)
Feasible
Profitable
Pre-emptive, defensible,
and difficult to
3.59

Attribute and Benefit Trade-offs

Price and quality

Convenience and quality
Taste and low calories
Efficacy and mildness
Power and safety
Ubiquity and prestige
Comprehensiveness (variety) and
simplicity
Strength and refinement
3.60

Strategies to Reconcile
Attribute and Benefit Trade-offs
Establish separate marketing
programs
Leverage secondary association (e.g.,
co-brand)
Re-define the relationship from
negative to positive

3.61

Core Brand Values

Set of abstract concepts or phrases
that characterize the five to ten most
important dimensions of the mental
map of a brand
Relate to points-of-parity and pointsof-difference
Mental map Core brand values Brand
mantra
3.62

Brand Mantras
An articulation of the heart and soul of
the brand
similar to brand essence or core brand
promise
Short three- to five-word phrases that
capture the irrefutable essence or spirit of
the brand positioning and brand values
Considerations
Communicate
Simplify
Inspire
3.63

Designing the Brand Mantra

The term brand functions describes
the nature of the product or service
or the type of experiences or benefits
the brand provides.
The descriptive modifier further
clarifies its nature.
The emotional modifier provides
another qualifierhow exactly does
the brand provide benefits, and in
what way?
3.64

Designing the Brand Mantra

Emotional
Modifier

Descriptiv
e
Modifier

Brand
Functions

Nike

Authentic

Athletic

Performance

Disney

Fun

Family

Entertainment

Fun

Folks

Food
3.65

Internal Branding
Members of the organization are
properly aligned with the brand and
what it represents.
Crucial for service companies

3.66

Brand Audit
Externally, consumer-focused
assessement
A comprehensive examination of a
brand involving activities to assess
the health of the brand, uncover its
sources of equity, and suggest ways
to improve and leverage that equity
It includes brand vision, mission,
promise, values, position, personality,
and performance
3.67

Importance of Brand Audits

Understand sources of brand equity
Firm perspective
Consumer perspective

Set strategic direction for the brand

Recommend marketing programs to
maximize long-term brand equity

3.68

Brand Audit Steps

Brand inventory (supply side)
Brand exploratory (demand side)

3.69

Brand Inventory
A current comprehensive profile of
how all the products and services sold
by a company are branded and
marketed:
Brand elements
Supporting marketing programs
Profile of competitive brands
POPs and PODs
Brand mantra
3.70

Brand Inventory (Cont.)

Suggests the bases for positioning the
brand
Offers insights to how brand equity
may be better managed
Assesses consistency in message
among activities, brand extensions,
and sub-brands in order to avoid
redundancies, overlaps, and consumer
confusion
3.71

Brand Exploratory
Provides detailed information as to
how consumers perceive the brand:
Awareness
Favorability
Uniqueness of associations

Helps identify sources of customerbased brand equity

Uncovers knowledge structures for the
core brand as well as its competitors
3.72

Suggested Brand Audit Outline

Brand audit objectives, scope, and approach

Background about the brand (self-analysis)
Background about the industries
Consumer analysis (trends, motivation,
perceptions, needs, segmentation, behavior)
Brand inventory
Elements, current marketing programs, POPs,
PODs
Branding strategies (extensions, sub-brands, etc.)
Brand portfolio analysis
Competitors brand inventory
3.73
Strengths and weaknesses

Brand Audit Outline (Cont.)

Brand exploratory

Brand associations
Brand positioning analysis
Consumer perceptions analysis (vs. competition)

Summary of competitor analysis

SWOT analysis
Brand equity evaluation
Strategic brand management
recommendations

3.74